House sales drop in Waihi

Listings are in short supply in Waihi and Waihi Beach as demand for houses outstrips supply, pushing up prices.

Demand is outstripping supply in Waihi and Waihi Beach as the number of house sales drop - while prices rise.

The latest figures from REINZ show the number of sales in 2015 for Waihi was 196 compared to 156 in 2016 and 58 to the end of June.

Meanwhile, the average median sale prices over the same timeframes had also jumped from $231,500 to $328,000 while at Waihi Beach in 2015, 107 properties sold compared to 111 in 2016 and 37 to the end of June.

The median sale price had climbed from $495,000 in 2015 to $780,000.

Harcourts Waihi, Waihi Beach and Paeroa general manager Greg Sheppard said both places had been short of listings "for a long time - that is nothing new".

"Anything good that comes up gets snapped up. But we are still achieving good prices - they are not coming back - the stock is just not there to satisfy the demand."

"We are just running into winter months now. Last year we travelled a little bit better than we have this year but we are still getting Aucklanders and people from some of the main centres coming down into the area."

The loan to value ratio restrictions and slight movement in interest rates may had an effect, he said.

Professionals NRG Realty Waihi branch manager Peter Sherman said some houses in Waihi were selling quickly and that had affected the market.

"The market has eased back and it started in 2016 and a lot of what has driven that is a lack of stock. But the prices have held."

However, Mr Sherman said there were not many properties in Waihi available for under $300,000 while there had been a lot of sales over $400,000.

"What has been happening is a lot of houses are selling quickly ... a few years ago our average volumes were at 300 so we are a long way from that. There is still a lot of pressure on the market from buyers but the volumes are just starting to catch their breath now and catch up a little bit."

Typically the strong selling period was over the spring and summer period, he said.
"With another strong spring selling period that picture could change again."

REINZ statistics for June also showed the number of homes sold in the Western Bay stayed the same at 55 and the median price increased from $517,500 in June 2016 to $627,500 last month.

REINZ Regional director Philip Searle said the Bay of Plenty market continued to show strong price growth, although the investment market had slowed compared to this time last year.

"Quality family homes are sought after with a higher number of listings coming to market."

Mr Searle said sales across the wider Bay of Plenty region fell 33 per cent.

Despite this, REINZ chief Bindi Norwell said record median prices had been seen in three regions this month, including the Bay of Plenty.

The median price across the Bay region rose $69,000, up 14 per cent, compared to June 2016 to reach a new record high.